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The effect of CEO prominence on cross-border acquisitions: An international entrepreneurship approach

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  • Kim, Yeongsu Anthony
  • Liang, Feng Helen

Abstract

Cross-border acquisitions and cross-border alliances are two of the most popular entry modes for firms, although each entails different levels of risk. In addition to its industry and location, a firm’s choice of entry mode may also be affected by its chief executive officer (CEO). We explore how a CEO’s level of prominence influences a firm’s entry mode choice. Studying the relationship between CEO prominence and firm entry mode choice is imperative because CEO prominence is a predictor of both an individual’s personality and their risk-propensity. We use data from US-based S&P 1500 firms to test how CEO media appearances influence a firm’s choice between cross-border acquisitions and cross-border alliances. The results indicate that prominent CEOs are more likely to engage in cross-border acquisitions than in cross-border alliances. Furthermore, this tendency increases when the CEO has broad managerial experience or international human capital.

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  • Kim, Yeongsu Anthony & Liang, Feng Helen, 2023. "The effect of CEO prominence on cross-border acquisitions: An international entrepreneurship approach," Journal of Business Research, Elsevier, vol. 163(C).
    • Handle: RePEc:eee:jbrese:v:163:y:2023:i:c:s0148296323003089
    DOI: 10.1016/j.jbusres.2023.113950
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